User Account

All Pages

Compute the amount of dividends in total and per share

Assignment Help Accounting Basics
Reference no: EM13867151

Tower Corp. had the following stock outstanding and Retained Earnings at December 31, 2015:

Common Stock (par $ 8; outstanding, 30,000 shares).. $ 240,000

Preferred Stock, 8% (par $ 10; outstanding, 6,000 shares) 60,000

Retained Earnings 280,000

On December 31, 2015, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2013 or 2014, and none have been declared yet in 2015. Three independent cases are assumed:

Case A: The preferred stock is noncumulative; the total amount of 2015 dividends would be $ 12,600.

Case B: The preferred stock is cumulative; the total amount of 2015 dividends would be $ 14,400. Dividends were not in arrears prior to 2013.

Case C: Same as Case B, except the total dividends are $ 66,000.

Required:

Compute the amount of 2015 dividends, in total and per share, that would be payable to each class of stockholders if dividends were declared as described in each case. Show computations 

Reference no: EM13867151

Questions Cloud

Discuss what medicaid is : Briefly describe how hospitals and physicians are reimbursed under the current Medicare payment mechanism.
What is the balance factor at the root node after the insert : Insert 100 in the AVL tree of Figure 11-36. The resulting tree must be an AVL tree. What is the balance factor at the root node after the insertion?
What is the minimum sample size the airline would need : What is the minimum sample size the airline would need to estimate with 95% confidence to obtain a margin of error of +/- 3% for this estimate of the percentage of overweight bags
The beginning of each year under the noncancelable lease : On January 1, 2010, the Alice Company leases equipment for five years, agreeing to pay $70,000 annually at the beginning of each year under the noncancelable lease. Superior Equipment Company, the lessor, agrees to pay all executory costs, estimated ..
Compute the amount of dividends in total and per share : Compute the amount of 2015 dividends, in total and per share, that would be payable to each class of stockholders if dividends were declared as described in each case. Show computations
Compare and contrast the fayols polc functions of management : Compare and contrast the Fayol's POLC functions of management
Calculate the standard deviation for each department : Calculate the 95% standard deviation for each department and indicate for me if any department is receiving on average $2k or more on the high end.
Dividends declared and paid during the current year : Complete the following: Shares authorized ____. Shares issued ____. Shares outstanding  ____. 2. The balance in Additional Paid-in Capital would be $ ____. 3. Earnings per share is $ ____. 4. Dividends paid per share of common stock is $ ____. 5. Tre..
Determine the objectives desired by alex from the solution : Determine the Objectives desired by Alex from the solution

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the correlation coefficient

Using one of the two formulas cited in this module calculate the correlation coefficient using the following values presented below. Once you have completed your calculation, discuss the following:

  What is jacks federal income tax liability what is his

jack has taxable income of 65000. he is a single tax filer and his federal income tax rates on the first 8350 is 10

  Compute the break-even point expressed in total revenue

St. Joseph hospital has overall variable costs of 30% of total revenue and fixed costs of 42 million per year. Compute the break-even point expressed in total revenue.

  Determining amount of additional paid-in capital

Percy Corporation was organized on January 1, 2010, with an authorization of 1,200,000 shares of common stock with a par value of $6 per share. Percy used the cost method to record the purchase and reissuance of the treasury shares. What is the to..

  Find the price of the bond with par value 1000 and 10

find the price of the bond with par value 1000 and 10 years to maturity with coupons at 8.4 convertible semiannually if

  Balance sheet data

Balance Sheet Data

  Fxed overhead costs are 12000 per year fixed selling and

chromatics inc. produces novelty nail polishes. each bottle sells for 3.60. variable unit costs are as follows acrylic

  The following data in thousands of dollars have been taken

a the following data in thousands of dollars have been taken from the accounting records of larop corporation for the

  The marinade department began the period with 125000 units

the marinade department began the period with 125000 units. during the period the department received another 180000

  Recorded the purchase as an asset

The Village Laundry Company purchased $4,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $1,000 on hand. The adjusting entry that should be made by the ..

  Target costing in today business environment

The T&M company wants to expand internationally. The marketing department suggests starting with specialty stores in Italy since a survey indicates that American quality towels are appreciated in Italy. The current price is about 20% higher than c..

  Appropriate hypotheses statements

What examples (professional, personal, social) can you provide on when we might use each type? What would be the appropriate hypotheses statements for each example?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd